Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Tom Watts – SC Cowen & Co.
Tom Watts – SC Cowen & Co.
In terms of the Virginia facility it seems like you have a wonderful anchor customer there with 20% utilization, what sort of level do you need to reach EBITDA breakeven in that facility and when do you think you’ll get there?
Jose Segrera
EBITDA breakeven as we’ve talked about in the past is right at that 20% level.
Tom Watts – SC Cowen & Co.
So essential this facility will be breakeven upon opening?
Jose Segrera
Yes in terms of with what we’ve booked and obviously as you’re opening up a facility you’ll have a ramp up period of time where you get the customer deployed and they ramp up their space but in terms of what’s committed and what we have binding contracts for, we are above that point.
Tom Watts – SC Cowen & Co.
And what sort of scale-up time will it take for CSC to get up to that 20% level?
Manuel Medina
We haven’t really given those exact details but they begin ramping up right on the beginning of July and it keeps ramping up over the next few quarters. So basically it’s rather quickly.
Tom Watts – SC Cowen & Co.
And in terms of additional customers to add on to that, how does the pipeline look for Virginia?
Manuel Medina
I must tell you we are very pleased with our pipeline in Virginia. We’re obviously very pleased on the federal side because we always expected that to be the case. We are particularly pleased with the pipeline on the commercial side because we really have the pleasant surprise that the interest on a wider rate of enterprise customers particularly as it relates to disaster recovery and business continuity. So the pipeline is very, very robust.
Tom Watts – SC Cowen & Co.
You also talked about the large—the space that had been freed-up during the March quarter and then been resold, about how many weeks was that revenue generating and if it had been revenue generating the entire quarter, how much revenue would it have generated?
Jose Segrera
It was completely revenue generating during Q3 so—it was running about $200 K a month and then during Q4 between the time that the customer down-graded and we brought the new customer up it didn’t turn up until late in the quarter.
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